While US sugar growers yesterday expressed relief that it had been excluded from the free trade agreement with Australia, America's sweets and cakes manufacturers were dismayed.

They wanted Australian sugar to enter the US market to help bring its price down. Jeff Nedelman of the Coalition for Sugar Reform - which represents confectionary makers and consumer groups - said the agreement was "political hypocrisy".

"The US cannot say (to other nations) we want greater access to your agricultural markets for our pork and beef and dairy if sugar is a sensitive issue that we can't even talk about," he said.

The New York Times described the agreement as "a rare trade victory for the Bush Administration".

Frank Vargo, of the US National Association of Manufacturers, told The New York Times that the agreement was "platinum standard".

The Washington Post said the agreement would "help cement a long-standing alliance between the US and Australia that has deepened with the support the Australian Government provided for the US invasion".

The industry body that represents US sugar farmers released a statement applauding the exclusion of sugar.

The response from US dairy farmers was muted, with spokesman Jerry Kozak saying: "Our best hopes were not realised, but neither were our worst fears."

The New York Times said the agreement would also be good for Hollywood, "whose movies and TV programs would gain expanded opportunities in Australia".